The Central Bank of the UAE increased its benchmark interest rates by 25 basis points mimicking the US Federal Reserve, which increased on Wednesday its rates for the second time in 2018, with two more expected this year.
The UAE's central bank hiked the interest rate to 2.25 per cent on its certificate of deposits, which it uses as a monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system, the regulator said in an emailed statement on Thursday.
"Effective Thursday, 14 June 2018, it [central bank] will raise interest rates applied to the issuance of its certificates of deposits in line with the increase in interest rates on US dollar," the central bank said.
The repo rate applicable to borrowing short-term liquidity from the central bank against certificates of deposits has also been increased by 25 basis points to 2.25 per cent, it added.
The US Federal Reserve increased on Wednesday its target range for the federal funds interest rate by a quarter point, to between 1.75 per cent and 2 per cent. The move reflects the US economic momentum, Fed chairman Jerome Powell said following the decision. The Federal Open Market Committee indicated that even though it us stepping up the pace of interest-rate hikes for 2018 and 2019, economic growth should continue apace.
Central banks in the region, which peg their currencies to US dollar with the exception of Kuwait, don’t always raise or cut rates on each specific occasion when the Federal Reserve does, but they usually follow it in its broad outline over the long run.
The Saudi Arabian Monetary Authority also raised its benchmark rates late on Wednesday. The kingdom's central bank said it is increasing its repo rate, at which it lends to banks, by a quarter point to 2.5 per cent. The reverse repo rate, was also raised by 25 basis points to 2 per cent.
Bahrain's interest rate on the one-week deposit facility was raised to 2.25 per cent from 2 per cent.
The central bank of Bahrain also raised its key policy interest rate on the one-week deposit facility to 2.25 per cent from 2 per cent. The central bank of Kuwait, however said that it is maintaining its discount rate unchanged at 3 per cent.
Qatar's central bank said it would raise its deposit rate by 25 basis points to 2 per cent.
There was no immediate announcement from Oman.
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Read more:
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UAE Central Bank raises interest rates by 25 basis points
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The rising rates come at a time when the global economic growth is being tested by escalating trade tensions between the US, its European Union counterparts, Canada, Mexico and China. The International Monetary Fund and the World Trade Organisation have already voiced concern about the impact of tit-for-tat trade tariffs on global commerce. There are also concerns about the impact of Fed rate hikes on some of the emerging market economies, which may struggle in the wake of higher US borrowing costs.
The timing of monetary tightening and the rise in borrowing costs is also critical for the energy-dependent economies of the Arabian Gulf region, which are recovering from a slowdown on the back of the three-year oil price slump.
“Higher domestic interest rates are a headwind for the GCC’s economic outlook, given that the bloc’s business cycle is out of sync with the US,” said Bilal Khan, senior Mena and Pakistan economist at Standard Chartered. “For instance, although the recent rise in global oil prices has seen liquidity conditions in many GCC economies improve, private credit offtake remains lacklustre."
Razan Nasser, senior economist at HSBC Bank Middle East agreed, saying the “the higher cost of borrowing and the US dollar’s strength should continue to weigh on private credit growth and the competitiveness of the UAE’s export services.”
Given that the economies in the region are still rebounding, tighter monetary policy needs to be compensated with looser fiscal stance and economic stimulus, according to economists.
Last week, Abu Dhabi revealed a three-year, Dh50 billion stimulus package and 10 initiatives that will create jobs, boost economic growth in the emirate, increase consumption, bolster small and medium-sized businesses, and relax regulations for businesses. These initiatives follow other steps aimed at propelling growth in the emirate by buoying the non-oil sectors. Dubai earlier announced measures to waive certain administrative fines for companies to increase the competitiveness of the emirate.
Ms Nasser said the package announced by Abu Dhabi could help offset some of the impact of the monetary tightening, however, “the extent of that relief would depend on the timing and allocation of that stimulus”.
The size of the stimulus is around 6 per cent of the emirate’s GDP over three years and the economic impact could be positive, particularly given that job creation appears to be a key focus, according to Mr Khan.
“As such, we think the recent policy announcements from Abu Dhabi and Dubai to use countercyclical fiscal measures to support non-oil growth is an appropriate response at this stage,” he said.
The specs
Price, base / as tested Dh1,100,000 (est)
Engine 5.2-litre V10
Gearbox seven-speed dual clutch
Power 630bhp @ 8,000rpm
Torque 600Nm @ 6,500rpm
Fuel economy, combined 15.7L / 100km (est)
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Company Profile
Company name: Fine Diner
Started: March, 2020
Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka
Based: Dubai
Industry: Technology and food delivery
Initial investment: Dh75,000
Investor: Dtec Startupbootcamp
Future plan: Looking to raise $400,000
Total sales: Over 1,000 deliveries in three months
'HIJRAH%3A%20IN%20THE%20FOOTSTEPS%20OF%20THE%20PROPHET'
%3Cp%3E%3Cstrong%3EEdited%20by%3A%3C%2Fstrong%3E%20Idries%20Trevathan%3Cbr%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20240%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Hirmer%20Publishers%3Cbr%3E%3Cstrong%3EAvailable%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Match info
Deccan Gladiators 87-8
Asif Khan 25, Dwayne Bravo 2-16
Maratha Arabians 89-2
Chadwick Walton 51 not out
Arabians won the final by eight wickets
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Ain Issa camp:
- Established in 2016
- Houses 13,309 people, 2,092 families, 62 per cent children
- Of the adult population, 49 per cent men, 51 per cent women (not including foreigners annexe)
- Most from Deir Ezzor and Raqqa
- 950 foreigners linked to ISIS and their families
- NGO Blumont runs camp management for the UN
- One of the nine official (UN recognised) camps in the region
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
UAE - India ties
The UAE is India’s third-largest trade partner after the US and China
Annual bilateral trade between India and the UAE has crossed US$ 60 billion
The UAE is the fourth-largest exporter of crude oil for India
Indians comprise the largest community with 3.3 million residents in the UAE
Indian Prime Minister Narendra Modi first visited the UAE in August 2015
His visit on August 23-24 will be the third in four years
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, visited India in February 2016
Sheikh Mohamed was the chief guest at India’s Republic Day celebrations in January 2017
Modi will visit Bahrain on August 24-25
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
COMPANY%20PROFILE
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs: 2019 Subaru Forester
Price, base: Dh105,900 (Premium); Dh115,900 (Sport)
Engine: 2.5-litre four-cylinder
Transmission: Continuously variable transmission
Power: 182hp @ 5,800rpm
Torque: 239Nm @ 4,400rpm
Fuel economy, combined: 8.1L / 100km (estimated)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
OTHER IPL BOWLING RECORDS
Best bowling figures: 6-14 – Sohail Tanvir (for Rajasthan Royals against Chennai Super Kings in 2008)
Best average: 16.36 – Andrew Tye
Best economy rate: 6.53 – Sunil Narine
Best strike-rate: 12.83 – Andrew Tye
Best strike-rate in an innings: 1.50 – Suresh Raina (for Chennai Super Kings against Rajasthan Royals in 2011)
Most runs conceded in an innings: 70 – Basil Thampi (for Sunrisers Hyderabad against Royal Challengers Bangalore in 2018)
Most hat-tricks: 3 – Amit Mishra
Most dot-balls: 1,128 – Harbhajan Singh
Most maiden overs bowled: 14 – Praveen Kumar
Most four-wicket hauls: 6 – Sunil Narine
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
COMPANY%20PROFILE
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